Facebook fleshes out plans to launch a digital currency called Libra

Facebook gets into banking: Libra will be available for Messenger and WhatsApp users around the world, and anyone who downloads the (yet-to-launch) app. Facebook says it has the lofty goal of bringing financial services to the 1.7 billion around the world who still don’t have bank accounts. Libra will let you send money to almost anyone with a smartphone, as easily as a text message and at “low to no cost,” Facebook says. All the details are in a white paper that Facebook released today.

The details: The Libra team will be governed by a non-profit foundation called Calibra based in Switzerland. Facebook already has backing for the project from 27 organizations, including Uber, Visa, Spotify, Vodafone, Mastercard, and nonprofit Women’s World Banking. Each of these partners has agreed to invest at least $10 million in the project.

Is it a cryptocurrency? Facebook dubs it a “new global currency powered by blockchain technology.” But it won’t be truly decentralized so Bitcoin purists probably won’t count it as a true cryptocurrency. Libra’s co-creator David Marcus tweeted that it will comprise three components: a blockchain, a reserve-backed currency (the digital wallets will be locally regulated in each country), and a new programming language called Move. But in practice, it sounds a bit like a more high-tech version of PayPal.

Questions remain: It isn’t clear how Facebook will make money off this, but it’s a safe bet that it will be planning to (it has promised not to sell targeted ads based on Libra data.) And the biggest question of all is whether people will trust Facebook with their hard-earned cash, after the way the company has repeatedly behaved recklessly with their data.

A new chip lets robots “imagine” their actions before they make a move

The challenge: The most capable, powerful industrial robots still have to work in tightly controlled environments, away from people, because of the risk of injuries. Giving robots the ability to work around humans without hurting them is a huge challenge for the industry.

A way around: Realtime Robotics thinks it’s got a solution, by giving robots the sort of low-level intelligence needed to move through the real world. It’s testing a new chip which lets machines rapidly consider a range of actions before choosing the one best suited to the task at hand.

Broader trend: Advances in software and hardware are gradually starting to increase robot IQ (which is currently very low). This could accelerate the spread of automation across many industries.

—Will Knight

Iceland’s data centers are booming—here’s why that’s a problem

Data centers are being built on Iceland at an astounding rate thanks to its cold climate, but its lack of global connectivity and limited energy resources could lead to a backlash, writes Tryggvi Adalbjornsson.

Thank the weather: The average temperature in Iceland’s capital Reykjavík is around 41 °F (5 °C), making it especially favorable for the data industry. Data centers here don’t need as much cooling as they do in warmer climes, helping to lower costs. Iceland also has competitive electricity prices, and access to renewable energy sources.

The result: Iceland’s data center industry has expanded rapidly over the past few years, led by three companies that rule the local market: Verge Global, Advania and Etix Everywhere Borealis. The centers are used for bitcoin mining, data science, and much else besides.

But: Recently, the industry has faced criticism from conservationists who view cryptocurrency mining as a wasteful use of Iceland’s resources. It’s also separated from Europe by about 500 miles of ocean, with just three submarine connections to the rest of the world. That could hold the industry back. Read the full story here.

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Quote of the Day

“Today it’s so much clearer that we need to raise the age to under 16.”

—Senator Markey tells the Wall Street Journal he thinks the internet’s default “adulthood” age of 13 is too low.